Q&A: My HDFC Co-op Won’t Transfer My Late Father’s Shares to Me

Q. I am an original and current shareholder in an HDFC co-op in Manhattan; I am on the lease and stock certificate along with my father (a co-shareholder). We both became shareholders along with the other existing tenants in the building at the time of conversion in 2000.

My father passed away in 2004. At the time, I gave proper notice to the building attorney via letters and a phone call. No follow-up was ever done by the board or building attorney. I have lived in the building and the apartment for over a decade paying my maintenance, attending elections, and voting. I am on the rent rolls. In addition, my father left a will, which has been fully probated in surrogate court. I am the sole beneficiary of his portion of the shares, as I already own mine. I am the executrix of the estate, as well as an existing shareholder.

The problem is the board refuses to transfer my father’s portion of his shares to me and provide an updated stock certificate with just my name – fourteen years after he passed away! They want my ‘current tax returns’ before transferring his shares. There is no policy or bylaw stating this as a requirement in our bylaws. We are not a Mitchell-Lama or limited equity building; we are private, and we don’t need to ‘income re-qualify’ every year or as an existing shareholder who is not purchasing any shares. How can I compel my board to transfer the shares, already? 

             —Inconvenienced by the Board 

A. “There is no one set of rules for HDFCs,” says partner Andrew Brucker at the Manhattan law office of Montgomery McCracken Walker & Rhoads LLP. “Some have a regulatory agreement with New York City, while others do not. And whereas all HDFCs have bylaws and lease, there is no requirement that they are all the same. 


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  • I must be missing something, because the answer seems to talk about two apartments whereas my read of the question only talks about one that used to be shared by the father and daughter.
  • There is a recent court decision from the Appellate division first department that decided that original shareholders have to income qualify (again) when a co-shareholder dies (both names on lease and stock certificate), in order to have the remaining shares transferred to the existing shareholder (even with a Will). If you don’t income “qualify” , 20 or 30 years later you can now be forced to sell and basically be displaced from your home. Most people do not have the same income from 20 or more years ago. This decision makes no sense and impacts all shareholders throughout the city, as now Board’s and the city can potentially use this decision to get rid of shareholders already in possession of the apt for years as an existing shareholder. Shareholders can now be forced from their homes and neighborhoods that they have occupied and lived in for 20, 30 and 40 years. We can thank Deblasio for his fight against HDFCS and the attorney who blindly insisted on this by opening up a can of worms in court. The coalition should be made aware of this decision and may want to make their Council members aware. Happy New Year HDFC Shareholders